Interest rates are positive because inflation makes purchases more expensive in the future than today
Indicate whether the statement is true or false
False. Even if inflation were zero, interest rates would be positive since people prefer present consumption to future consumption.
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List two things that can cause the industry supply curve to shift
What will be an ideal response?
How might a restaurant manager use the concept of diminishing marginal utility to increase sales to her regular dinner customers?
a. She could expand the variety of options available at each price point on the dinner menu. b. She could increase portion size without raising the price of the dinner menu items. c. She could offer premium versions of dinner menu items to make the regular items seem more affordable. d. She could offer a discount on dessert only to people who order dinner.